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skelet666 [1.2K]
3 years ago
6

Which of the following reflects the order of operations when the Fed buys bonds on the open market?a. Money supply increases, in

terest rates decrease, investment spending increases, AS shifts right.b. Money supply decreases, interest rates increase, investment spending decreases, AD shifts left.c. Money supply increases, interest rates increase, investment spending increases, AD shifts right.d. Money supply decreases, interest rates increase, investment spending decreases, AS shifts left.e. Money supply increases, interest rates decrease, investment spending increases, AD shifts right.
Business
1 answer:
muminat3 years ago
7 0

Answer:

Reflection of order of operations when the Fed buys bonds on the open market:

a. Money supply increases, interest rates decrease, investment spending increases, AS shifts right.

Explanation:

When the Federal Reserve buys bonds on the open market, the action increases the money supply in the banks.  This allows banks to increase loans, and investors will increase investments.  It also increases the price of government securities and effectively reduces their interest rates, thereby decreasing the overall interest rates while promoting investments.

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On July 1, Year 4, Pell Co. purchased Green Corp. 10-year, 8% bonds with a face amount of $500,000 for $420,000. The bonds are c
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Answer:

$21,800

Explanation:

The computation of 4-year revenue is as shown below:-

Bond Income of 4th Year = Face amount × Bond × 1 ÷ 2

= $500,000 × 8% × 1 ÷ 2

= $20,000

Interest Revenue = Bond Income + Amount of Discount Amortized

= $20,000 + $1,800

= $21,800

Therefore for computing the interest revenue we simply bond income with the amount of discount amortized.

6 0
3 years ago
LeMay Department Store uses the retail inventory method to estimate ending inventory for its monthly financial statements. The f
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Answer:

Cost to retail ratio = 57.05%

Explanation:

Particulars                                                               Cost       Retail

Beginning Inventory                                            $46,000    $66,000

Add: Purchases                                                    $213,000   $406,000

Less: Purchases Return                                       $7,000       $9,000

Freight In                                                               $15,558          -

Net Markups                                                               -             $6,400

Good Avail. for Sales (Without markdowns)   $267,558   $469,000

Cost to retail ratio = $267,558/$469,000

Cost to retail ratio = 0.570486

Cost to retail ratio = 57.05%

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3 years ago
Three documents required by Department of Trade and Industry when registering a private company
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Identification
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Calculate the value of total production for 2020 valued at the base year. Sugar per kg 1 Shirt Petrol per liter Base year: Price
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The value of general production for 2020 is worth the bottom year: unfastened, granulated white sugar sold in 33-eighty oz. packages, irrespective of packaging type. Excludes brown sugar and synthetic sweeteners."

Production is the procedure of making or manufacturing items and merchandise from uncooked materials or components. In other words, manufacturing takes inputs and makes use of them to create an output that is a match for intake – an awesome product that has a price to a given up-person or client.

Production is the manner of creating, harvesting, or creating something or the amount of something that was made or harvested. An example of production is the introduction of fixtures. An example of production is harvesting corn to consume. An instance of production is the quantity of corn produced.

There are three commonplace forms of fundamental production systems: the batch system, the non-stop gadget, and the assignment system. inside the batch gadget, popular-motive systems and strategies are used to provide small quantities of output (goods or services) with specs that change substantially from one batch to the following.

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8 0
1 year ago
The managerial accountant at Sunny Manufacturing needs to determine how many costs are fixed costs and how many costs are variab
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Answer:

Month. Machine Hours. Total costs

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February. 2,900 $23,200

March. 1,000. $19,750

April. 2,400. $21,000

May. 3,400. $23,900

High-Low method = 23, 900 + 21,000

= 44,900

5 0
3 years ago
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